This is Banknifty Weekly Option short strategy directional hedge bot. Where the BOT takes automatic Short at the money option strike prices based on Banknifty's direction.
This strategy is available only under Postpaid pricing plan.
The strategy has ATR based Stoploss and Trailing StopLoss built-in as well as price based targets
Strategy Details:
The Bot is developed to follow the trend of Banknifty. It shorts ATM (At the money) option strike price based on Banknifty's direction and later on if trend supports then Shorts OTM (Out of the money) option strike prices as hedge. Along with these two short positions, it also buys far OTM option strike prices to minimize margin requirement. This is the second version of BNFWiDiSH. The difference is, this bot doesn't take both Call and PUT short positions together.
If Banknifty generates Buy signal, then the Bot shall Short ATM Put option and later short OTM Call option.
If Banknifty generates Short signal, then the bot shall Short ATM Call option and later shorts OTM Put option.
Bot may exit from trade when Banknifty hits target 2% or we may adjust the positions, it depends on market conditions. This adjustment is completely dynamic. Along with the Short positions.
This strategy can be automated with Aliceblue, Mastertrust and IIFL for now, as and when we integrate other brokers will update you all.
Margin:
This is a positional strategy Bot hence margin is approximately Rs. 85K. Please maintain Rs. 1.2L margin to continue to trade and to avoid any error in execution due to margin shortfall.
Target and SL Logic:
The strategy has exit using ATR indicator. No other price based target or Stoploss is defined in this version. However if Banknifty moves 2-1.5% in either direction then the bot shall exit from the existing position.
Please ensure you maintain the required margin to avoid discontinuity during drawdown phase.
Disclaimer: The strategy used by this Algorithmic trading bot is based on live market data and does not indicative or guarantee similar returns. This trading bot may not perform as expected due to unforeseen market conditions, technical issues, or other factors. We do not guarantee any specific returns or outcomes, and you should be prepared to potentially lose all or a portion of your investment. We are not responsible for any losses incurred from using this Algorithmic trading bot, and you own full responsibility for your investment decisions.
Holding : Positional
Instrument : BANKNIFTY
Segment : FNO
Market Conditions : Trending
Capital Required : 45000
Daily Return : -2.00 - 4.00 %
Monthly Return : 4.00
Yearly Return : 40.00
Winning Probablity : 58.00
